China is fining Alibaba, JD.com, Vipshop for price complaints

Consumers have accused the platforms of raising product prices before offering discounts during a major shopping festival in November, which made them appear to be getting a better deal than they actually were, according to the regulator. The platforms were also involved in making fake promotions and using bait and switch tactics, the regulator said.

Alibaba declined to comment. JD.com and Vipshop Holdings did not immediately respond to requests for comment.

While the fines were nominal for companies, they serve as a warning to them and to the wider internet sector. In recent months, China has continued to analyze the strong technology sector, which has accumulated large amounts of user data.

This campaign hit billionaire Jack Ma hardest, along with the two companies he founded – Alibaba and the fintech giant Ant Group.

In early November, Beijing eliminated Ant’s successful initial public offering, which was set to raise at least $ 34.4 billion. This came after Mr Ma, Ant’s controlling shareholder, criticized President Xi Jinping’s initiative to control risks, while also criticizing regulators for stifling innovation. On Sunday, regulators ordered Ant to refocus on its initial payment business, while more profitable investment and lending businesses will be restricted.

Meanwhile, regulators last week launched an antitrust probe into Alibaba, which owns a third of Ant, in connection with allegations that the company used its dominant market position to pressure traders to sell only on its platforms. The Chinese government is looking to shrink Mr. Ma’s empire and eventually take a bigger stake in its business.

China also introduced a set of new draft antitrust guidelines for the technology industry last month, trying to regulate new internet consumer trends.

—Liza Lin contributed to this article.

Write to Chong Koh Ping at [email protected]